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onlinePSLA Schedules On-Line Continuing Education Class:
"Eight Cases to Know by Name"

September 19, 2012 - 9:00am - 11:00am

PSLA has scheduled a CE session exclusively for its members that examines various important insurance court decisions that will provide a substantive discussion of the principles they represent. The list begins with the Montrose decision that spawned the "Montrose" endorsement. The case involves the "known loss," or "loss in progress" doctrine. The other cases include topics on:
  • requiring some degree of independence of counsel defending an insured when there is a reservation of rights;
  • explaining the concept of a "targeted" tender of defense and indemnification;
  • the leading case with respect to what services constitute professional services (and would therefore be properly insured under a malpractice type of policy) and those which do not (and presumably would be properly insured under a BOP or CGL policy);
  • the "seminal" case, according to FC&S, in defining fair market value and is an instructive story for attendees on the variations in state law and policy language in how to measure the value of a loss;
  • the case that first developed the now-controversial "reasonable expectations" doctrine or rule that will permit an insured's objectively reasonable expectation of coverage to defeat policy language that excluded a particular loss;
  • the state trial court decision that led to the landmark verdict (tens of millions of dollars in compensatory and punitive damages) against a carrier related to mold. The case is an instructive story on how the industry responded to and continues to respond to mold claims; and
  • the case that provides an answer to the question of whether "additional insured" status applies only to vicarious liability or applies even in instances in which the putative additional insured has some legal exposure.
  • PSLA member employees and principals will be able to secure 2 hours of state approved CE Credit by attending the class in any of the following locations: the new Center City Philadelphia location, Exton, King of Prussia, Chadds Ford, Harrisburg, Greensburg, and Warrendale (Pittsburgh Area).
  • Click here for Course Description.
  • Click here for the Registration Form.
eligibleEligible Surplus Lines Insurers Updated

The Pennsylvania Insurance Department has announced the following updates to the Eligible Surplus Lines Insurer List dated January 17, 2012. You can obtain this update by clicking on the following link, Eligible List Updates which can also be found on PSLA's website under Eligible Insurers.
legislativeLegislative Corner - Pennsylvania

Although the Pennsylvania legislature has adjourned for the summer, several key issues of importance were acted on in the final hours of session. Here's an update:
  • New Budget: Governor Corbett signed the $27.7 billion FY 2012-13 state budget just before midnight on June 30, 2012. The budget contains no new taxes or tax increases. The deal was struck on the spending plan after weeks of negotiation on several issues, including: tax incentives for locating an ethane processing plant in western Pennsylvania, basic and higher education funding, and a new county block grant pilot program for human services. The agreement also changes the corporate tax structure to provide for a single sales factor calculation. Changes were also made to the Education Improvement Tax Credit program, which provides a tax credit to businesses that make contributions to approved educational improvement organizations.
  • Towing Reform: The Senate passed the towing reform legislation (HB 1908) with a compromise amendment that resolves a dispute between the State Police and the American Automobile Association of American (AAA) around disabled vehicles and/or drivers. The House then voted to concur on the Senate amendments and the bill now goes to Governor Corbett for his signature. The bill requires disclosures of all fees, location of storage, access to vehicle while in storage and prohibits authorizations for repairs as a condition of towing services.
  • Holding Company Revisions: SB 1464 was unanimously approved by the House and is now awaiting the Governor's signature. The final version of the bill contains the holding company changes, the enabling language for the reinsurance credit regulation and the negotiated language resolving the international group supervisor issue.
  • Regulation of Professional Employer Organizations (PEO): HB 1055 has passed the House and Senate and is now awaiting the Governor's signature. The bill regulates the professional employer (PEO) industry, by establishing standards and responsibilities for PEO and its clients. The legislation states that a PEO is not engaged in the sale of insurance when providing employer services that include employee benefit plans. The legislation designates both the PEO and the client as employers for purposes of workers compensation. The contract between the PEO and the client must designate responsibility for providing workers compensation coverage.
  • Venue Reform: House Resolution 792 was introduced on June 27, 2012 by Representative Bryan Cutler (R-Lancaster) that would call for the PA Supreme Court to study the costs of Pennsylvania's venue laws and consider extending the 2002 venue reform the Court implemented for medical malpractice to all civil actions.
There is also similar legislation (HB 1976) that has been stalled in the legislature because a number of Representatives would like the Supreme Court to take action, not the General Assembly.

The Legislature has recessed for the summer and will return in late September for about three weeks. They will not return after the November election, so the Fall session will conclude the 2011-2012 session.
nationalNational Issues
  • Capital Building NARAB II: There has been a tremendous amount of activity on a variety of insurance regulatory and modernization efforts. National trade groups including NAPSLO, AAMGA, the Big I, Council of Insurance Agents & Brokers, Property & Casualty Insurance Association of America and others are advocating and educating Senators and their staff members on the benefits of passing the National Association of Registered Agents & Brokers (NARAB II) legislation, also known as S. 2342. Click here for a full text of the legislation.

    The NARAB concept (which has already been passed twice before by the US House of Representatives). The creation of a national agent/broker licensing entity that strengthens the competitive insurance market and allows agents and brokers operating on a multi-state level to avoid duplicative licensing requirements (while maintaining important consumer protections), will help to further streamline the compliance activities now being required - and costs being incurred - by wholesale insurance professionals. In various visits with Senators and their staff members on Capitol Hill, we have advised that the legislation now has the full support of the National Association of Insurance Commissioners.

    If passed into law, an agent or broker would continue to remain fully licensed in their home State and could then apply for membership in NARAB, which would provide an interstate clearinghouse for nonresident licensure. An approved NARAB member could utilize the clearinghouse to be issued nonresident licenses in any other jurisdiction. States would retain their regulatory jurisdiction over consumer protection, market conduct and unfair trade practices, and would retain their rights over licensing, supervision, disciplining and setting of licensing fees for insurance producers.

    Efforts will continue to obtain additional cosponsors for the bill, in the hope that hearings can be held once the new Congress convenes in 2013 and the matter can then be moved to the floor for a vote by the Senate, after which the House of Representatives would then consider the measure for passage.
  • NIMA & Surplus Lines Clearinghouse: Implementation of the Nonadmitted Insurance Multistate Agreement (NIMA), has suffered another setback with the State of Nevada recently having decided to leave the Clearinghouse that was developed to facilitate the allocation and sharing of multistate surplus lines premium taxes among participating states. Nevada will now join 33 other states collecting 100% of the nonadmitted insurance premium tax where they are the Home State of the insured. These states represent approximately 73% of the nationwide surplus lines premium volume. This leaves only 5 states (Florida, Louisiana, South Dakota, Utah, and Wyoming), and Puerto Rico, representing approximately 17% of the nationwide surplus lines premium volume who are participating in the Surplus Lines Clearinghouse under NIMA.

    Additional information pertaining to NIMA and the Clearinghouse can be obtained from the website Tutorials are available on the Clearinghouse website at For those reporting entities placing business within the states that have adopted the NIMA concept, the Surplus Lines Clearinghouse has established the NIMA State Tax Table  and the Surplus Lines Clearinghouse Tax Calculator for help in navigating the tax rates, fees and assessments to be charged by the NIMA states on nonadmitted, multi-state insurance premium to be filed through the Clearinghouse.
  • Federal Insurance Office Report on Insurance Modernization: During the Fall of 2011, the Federal Insurance Office (FIO) issued a request for comment in the Federal Register on a variety of issues surrounding insurance modernization. The FIO was to have issued its final report to Congress in January 21, 2012, but it has yet to be released.

    Some on Capitol Hill believe that the Office of Management and Budget reviewed the report, and sent it back to the Department of Treasury for revision. There has been no announcement as to when the widely anticipated report might be release.

exportlist2012 Export List - Miscellaneous Errors & Omissions or

Professional Liability Coverage

Since the recent publishing of Pennsylvania's Export List  of insurance coverages or risks eligible for export, we have received some inquiries and have noted filing errors with regard to the use of the "Miscellaneous Errors & Omissions or Professional Liability" kind of coverage. We would like to bring to your attention the fact that there are exclusions to utilizing this kind of coverage. Exclusions to the Miscellaneous Errors & Omissions or Professional Liability1604-E (Export) filing type are as follows:      

  • Architects and Engineers
  • Medical Malpractice
  • Lawyers
  • Personnel Agencies
  • Travel Agents
  • Real Estate Brokers
  • Insurance Agents and Brokers

If this kind of coverage is selected for a coverage that is excluded it will be returned for correction and proper filing. 

helpfulhintsHelpful Hints Corner: Using PSLA's Electronic Filing System (EFS)
to verify a 1609-B filing type


The following steps can be used to determine if a 1609-B filing type is applicable:

  • Login into EFS and select SEARCH OR VIEW A FILING.
  • Enter the insured's name and if you have more than one Customer ID you will need to select a Customer ID, then select the Search For Policy button. The screen will populate with all the policies that have been entered in EFS using that particular named insured.
  • If there has been a change in the insured's name you will need to do (2) separate searches by each of the insured's name.
  • The policy number also could be used if the number is consistent with the exception of a letter or number at the end of the policy number. (i.e. CL231457B or CL2345703).
  • The next screen will show all the consecutive policies in EFS and by looking at the Eff. Date and the Exp. Date; you will be able to verify that there is not a gap in coverage.
  • The exception being, if a policy had previously been cancelled the Exp. Date will not reflect the cancellation date. You will need to select the policy that is showing (CN) under the column labeled (FS), and View History to see what date the policy was cancelled.
  • You will also need to select each policy and select View History button to verify that the Type of Coverage is consistent.

Using this process may save you time searching through your system and also may prevent you from receiving a notification from PSLA with regard to compliant issues. Note: Keep in mind that this feature will only function with respect to placements made by your agency. You must confirm that the coverage is consistent for the three years in question.


Renewal Function

  • Log in to EFS and select SEARCH OR VIEW A FILING
  • Enter Insured Name and/or last year's policy number
  • Select Policy and RENEW tab

A majority of the information from the previous year's policy will be populated in the fields. You will still need to review and/or update some of the fields in EFS. Using this process will save you time and reduce errors. 

dilligentDiligent Search Review Process Change Bulletin


The Pennsylvania Surplus Lines Association has released a Bulletin to provide advanced notice that effective August 1, 2012, the PSLA will be returning 1609-PR Producer Affidavit forms for missing and/or invalid declining carriers.


According to Section 124.5(i) of the Regulations that support the Pennsylvania Surplus Lines Law (Section 1609) "A diligent effort by the producing broker to procure the desired coverage from admitted insurers shall have been made if the producing broker declares on the prescribed form that at least three admitted insurers which are writing, in this Commonwealth, coverage comparable to the coverage being sought have declined to insure the particular risk."


Enhancements in the process will allow PSLA to return non-compliant 1609-PR Producer Affidavit forms in an adequate time frame that provides for proper correction BY THE WRITING PRODUCER and re-upload into PSLA's Electronic Filing System (EFS) BY THE SURPLUS LINES LICENSEE, thereby completing the filing.


As the process is reintroduced, there are several items that should be kept in mind as the writing producer, who represents the insured, qualifies the placement for entrance into the surplus lines market. Review of Section 124.5 of the Regulations and Section 1609 of the Pennsylvania Surplus Lines Law will assist in the process as well as review of the March 15, 2005 and July 6, 2009 PSLA bulletins.


pslaissuesPennsylvania Insurance Department Issues New Surplus Lines Licenses


During the first six months of 2012, the Pennsylvania Insurance Department issues licenses to 69 agencies to transact business in the Commonwealth. Please join us in welcoming the following agencies:


AB Risk Specialist, Inc. of GAGriffin Underwriting Services A Division of Cochrane Griffin & CO, Inc.
Advanced E&S of IL, LLCHBS Assoc, Inc. of CT
Affinity Insurance Services, Inc. of MAHeath XS LLC/DBA Hallmark
Excess of Addison, TX
Agentic Insurance, LLC of PAHeffernan Insurance Brokers of CA
Alteris Insurance Services, Inc. of CAThe Horton Group
American Agents &
Brokers, Inc. of NY
Hybrid Insurance Agency, LLC of CT
American Special Risk LLC of NCInpac Group, LLC
Arthur J Gallagher Risk Mgmt Services, Inc. of ALIronwood Insurance
Services, LLC of GA
Arthur J Gallagher Risk Mgmt. Services, Inc. of MNInsuretrust.Com, LLC
Arthur J. Gallagher Risk Mgmt. Services, Inc. of OKThe Keating Group, Inc. of AZ
Assuredpartners of OH, LLCKeystone Specialty Risk, LLC
Barrick & Associates, Inc. of PALeverity Insurance Group, Inc. of OH
Beecher Carlson Insurance
Agency, Inc. of AZ
Managed Insurance
Services, Inc. of FL
Bell & Clements, Inc. of VAMarsh & McLennan Agency, LLC
of Cape May, NJ
Blais Excess & Surplus Agency
of TX, Ltd. of PA
Marsh & McLennan Agency, LLC
of Paramus, NJ
Bolton & Company of KYThe Masters Agency, III, LLC of PA
Bowen Miclette & Britt of Florida, LLCMaury, Donnelly & Parr, Inc. of MD
Brown & Brown of Tennessee, Inc.Moreton & Company of UT
The Buren Insurance Group Inc. of OHMultigard Insurance Services, Inc.
of KY
Cadence Insurance Brokers, Inc. of WIOTM Insurance Specialists, LLC of TX
The Cayemitte Group, Inc. of PARFF & Associates, Inc. of NY
Charter Insurance & Consulting Agency , Inc. of GARisk Placement Services, Inc.
of Houston, TX
C&M First Services, Inc. of NYRohers & Company, Inc. of SC
CTC Transportation Ins Services, LLCSandy Springs Ins Corporation of MC
Construction Risk Partners, LLC of NJSmyth Trade Credit, LLC of NJ
Contractor Managing General Insurance Agency, Inc. of CAStateside Underwriting
Agency, Inc. of IL
Alteris Insurance Services, Inc. of CAStrategy Management
Insurance, LLC of MD
Charter Insurance & Consulting
Agency , Inc. of GA
Swett & Crawford of
Georgia, Inc. of NC
D A Folkes, LLC of NJTower Risk Management Corp of FL
E L M Insurance Brokers, Inc.TWFG General Agency, Inc. of TX
Encompass Risk Solutions, Inc. of PAVGM Brokerage, Inc.
E&O Professional Risk Mgmt. & Insurance Services, LLCWells Fargo Insurance Services, Inc. of Youngstown OH
Equinox Global, Inc.Wm Rigg Company of TX
Franchise Risk Solutions, Inc. of TN
Worthington Insurance
Brokers, Inc. of NY
 GB Kenrick Associates, Inc. of MI

pslametricsPSLA 2011 Metrics

The Stamping Office maintains data on a variety of activities during the year, including the monthly averages of filings entered, 1609 filings reviewed, individual surplus lines licensees questionnaires, calls and emails, and others. The chart below provides an overview of the activity during the past year:


Category1Q 20112Q 20113Q 20114Q 2011
Filings Entered - Monthly Average6,0147,0266,7236,352
1609-SLL/1609-PR Filings Reviewed - Monthly Average4,2614,3954,7573,850
1620 Reports Reviewed - Monthly Average1,7211,5291,3661,348
RCT-123 Reports Reviewed1,587861512
Individual Surplus Lines Licensees Questionnaires48556249
Customer IDs Created37192026
Customer IDs Re-associated23527
Training Workshop Attendees2661828
Statement of Accounts - Monthly Average455467469450
Calls/Emails - Monthly Average619455353454
RCT-123 Annual Tax Reports Reconciled252000
1620 Monthly Reports Reconciled - Monthly Average8910796222
Filings Examined - Monthly Average5,7644,5454,6363,753
New Eligible Insurers0151

stayintouchStay in Touch


You've heard from us - now let us hear from you! We trust you enjoyed this new format to keep you up to date on important events and PSLA member benefits. Let us hear from you as we want to make membership in the PSLA as responsive and valuable as possible. Email us at:  [email protected].


Questions? We are here to serve you. Contact us:


Question TypeTelephoneEmail
General Information610-594-1340, option 1[email protected]
Training610-594-1340, option 1[email protected]
Bulletins610-594-1340, option 0[email protected]
Electronic Filing610-594-1340, option 1[email protected]
Filing Review610-594-1340, option 2[email protected]
Accounting610-594-1340, option 3[email protected]
Eligible Insurers610-594-1340, option 0[email protected]
Information Technology610-594-1340, option 4[email protected]